Cheap is Cheap – Buyer Beware!July 8, 2019
A quick way of adding Entropy into your organization is via purchasing.
If you’re always buying from the lowest price vendor, you’re running a purchasing department.
If you’re working to understand the TOTAL cost of ownership and rewarding suppliers that support; excellent customer service, flexibility delivery, outstanding quality and jointly deliver ongoing cost reductions, you have a world class procurement function that builds supplier partnerships.
The best way of becoming an Entropy Busters™ zealot. Never open the door and let it in…
Ask yourself and the team these three questions.
- What percent do we reward contact to the lowest price bid?
- Do we have a supplier score card and are the rankings credible?
- What percent of suppliers are jointly working with procurement, supplier quality engineering and design engineering?
If you don’t readily have the answers to these questions, you’re letting entropy into the process.
Remember, Cheap is Cheap – Buyer Beware!
Categorized in: Supply Chain Entropy Busters®